EUR-USD MAY FORM HEAD AND SHOULDERS FORMATION ON HOURLY CHART. THE CLASSICAL REVERSAL PATTERN (HEAD AND SHOULDERS) IS NOT LOOKING AS PRETTY AS WE LEARN FROM TEXT BOOK OR IN STUDY MATERIAL, SO THIS IS MORE OF PREDICTION THAN ACTUAL PATTERN FOR CONSERVATIVE TRADERS. WHERE AS FOR AGGRESSIVE TRADERS THIS CAN TURN INTO GREAT SHORTING OPPORTUNITY BECAUSE CHART IS TRADING AT TOP OF POTENTIAL RIGHT SHOULDER OF PATTERN, WHICH GIVES VERY GOOD RISK REWARD TRADING SET UP.
AGGRESSIVE AND CONSERVATIVE BOTH TRADING APPROACH WILL HAVE PROS AND CONS.
IF CONSERVATIVE TRADERS WAIT FOR PARALLEL NECK LINE AND BREAK, THEY WILL NOT HAVE RISK REWARD RATIO AS GOOD AS AGGRESSIVE TRADERS. WHERE AS AGGRESSIVE TRADERS WILL GET GREAT RISK REWARD RATIO AT THE COST OF LESSER CONFIRMATION OF FORMATION.
SO, IT IS UP TO TRADERS WHICH APPROACH THEY WOULD ADAPT.
SELL ENTRY: 1.1730 (CMP- FOR AGGRESSIVE TRADERS)
STOP LOSS: 1.1810 (1 ATR STOP LOSS ABOVE HEAD)
TARGET: 1.1590 (MEASURED MOVE AS PER HEAD AND SHOULDERS)
AGGRESSIVE AND CONSERVATIVE BOTH TRADING APPROACH WILL HAVE PROS AND CONS.
IF CONSERVATIVE TRADERS WAIT FOR PARALLEL NECK LINE AND BREAK, THEY WILL NOT HAVE RISK REWARD RATIO AS GOOD AS AGGRESSIVE TRADERS. WHERE AS AGGRESSIVE TRADERS WILL GET GREAT RISK REWARD RATIO AT THE COST OF LESSER CONFIRMATION OF FORMATION.
SO, IT IS UP TO TRADERS WHICH APPROACH THEY WOULD ADAPT.
SELL ENTRY: 1.1730 (CMP- FOR AGGRESSIVE TRADERS)
STOP LOSS: 1.1810 (1 ATR STOP LOSS ABOVE HEAD)
TARGET: 1.1590 (MEASURED MOVE AS PER HEAD AND SHOULDERS)